Business World Online
Posted on June 10, 2011 06:50:01 PM
LOPEZ-LED First Gen Corp. denied on Friday reports that it had blocked plans of partner BG Energy Holdings to sell its stake in the company’s assets to Korea Electric Power Co. (KEPCO).
"BG Holdings’ proposed sale to KEPCO is not in accordance with the requirements of the joint venture agreements," First Gen said in a disclosure.
"For this reason, First Gen’s right of first refusal has not been triggered by the transaction. We thus deny that First Gen has exercised its right of first refusal," the company said.
BG Holdings controls 40% in First Gas Holdings Corp. which in turn operates the 1,000-megawatt Sta. Rita and 500-megawatt San Lorenzo gas-fired power plants in Batangas City.
KEPCO operates the rival 1,200-MW Ilijan combined-cycle power plant in Batangas.
First Gen noted, however, that its parent company First Philippine Holdings Corp. continues to evaluate its "rights" over BG Holdings’ planned divestment of its interests in the power assets.
BG Holdings sealed the deal to sell its 40% share in First Gas to KEPCO for $400 million in August 2010 but the $400-million payment was not expected until early 2011 according to earlier reports. First Gen had similarly said back then it would be studying its options over the sale in the meantime.
First Gen’s attributable net income for the first quarter fell 55% to $16.1 million from $36.1 million in the same period last year. Its core net income also fell 42% to $20.9 million from $29.1 million.
The company attributed the lower earnings to the "lower contributions of from geothermal affiliate Energy Development Corp. and FG Hydro."
Shares of First Gen closed at P14.36, down 0.28% from its previous close of P14.40 a piece. -- ENJD
"For this reason, First Gen’s right of first refusal has not been triggered by the transaction. We thus deny that First Gen has exercised its right of first refusal," the company said.
BG Holdings controls 40% in First Gas Holdings Corp. which in turn operates the 1,000-megawatt Sta. Rita and 500-megawatt San Lorenzo gas-fired power plants in Batangas City.
KEPCO operates the rival 1,200-MW Ilijan combined-cycle power plant in Batangas.
First Gen noted, however, that its parent company First Philippine Holdings Corp. continues to evaluate its "rights" over BG Holdings’ planned divestment of its interests in the power assets.
BG Holdings sealed the deal to sell its 40% share in First Gas to KEPCO for $400 million in August 2010 but the $400-million payment was not expected until early 2011 according to earlier reports. First Gen had similarly said back then it would be studying its options over the sale in the meantime.
First Gen’s attributable net income for the first quarter fell 55% to $16.1 million from $36.1 million in the same period last year. Its core net income also fell 42% to $20.9 million from $29.1 million.
The company attributed the lower earnings to the "lower contributions of from geothermal affiliate Energy Development Corp. and FG Hydro."
Shares of First Gen closed at P14.36, down 0.28% from its previous close of P14.40 a piece. -- ENJD
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